There are three mortgage products available to banks, lenders, and mortgage brokers that provide 100% financing. Each product has certain restrictions. The products are:
FreddieMac HomePossible 100 - requires minimum credit score of 700; income restrictions apply
Veteran's Administration VA Mortgage - must be an eligible veteran
US RDA - Some geographic restrictions apply.
I would call a few banks and lenders and ask if they offer any of the above loan products. If you are not eligible for any of the three, then an alternative suggestion would be to apply for a SHIP grant through Leon County or Tallahassee. Each county and/or municipality sets it's own rules for SHIP grants, but the key feature in common will be income restrictions. The grants include substantial down payment funds plus assistance to cover closing costs.
As Karen points out there are risks with 100% financing when home values are declining. The main risk hinges on if you plan to keep your home long enough for housing values to recover... which may be 2-5 years before you would begin to build equity. During that time it is possible that your newly purchased home may decline in value, leaving you "upside down" for several years. This would keep you from selling, refinancing, or tapping home equity for an emergency.
On the other hand, home owners with equity are the first bearers of risk in a declining market. Once you've purchased your home, the year-by-year change in your home's value has no impact on your mortgage... but if you have locked up cash in equity, that cash is essentially "lost" until your home's value returns to the purchase price when you closed. It may be wiser to keep down payment cash in the bank for emergencies rather than locking it up in equity especially considering that "tapping home equity" means paying interest and closing costs to convert equity back to cash.
A good mortgage sales rep can advise you on the best course of action for your circumstances.
The basic answer to your questions is YES!! You absolutely can get 100% financing through one of the available programs, and, if you qualify, can get additional financing for the closing costs, even with your husband's lack of credit. E-mail me at MaryAdkison@kw.com or call me at (850)491-2721and I will get you in touch with my lender, who will be happy to explain all the available programs out there and match you up with the perfect loan. Then we can help you find that dream house for you and your husband. I look forward to hearing from you soon.
Good question and a great time for buy. Interest rates are still very low and there are some great bargains on the market.
You've been given great answers by the other Realtors on this question too. Talking with lenders and finding out what amount you could qualify for is the first step. Yes, the Lenders Consortium does have programs to help, but they are not the do all/end all of assistance. A number of the banks in town provide programs for first time homebuyer downpayment assistance. It's based on a number of things, including how much money you make and of course interest rate is partially determined by your credit rating. I recommend calling several of the local banks and asking about their first time home buyer programs and assistance. If you are ready to buy, I recommend checking with them all during the same period of time, get their rates and see what they can do for you. You really have nothing to lose by talking with them and if for some reason you cannot purchase, most lenders will provide you with suggestions on helping you get there financially.
Good luck. Of course, call me for any assistance, contact names for lenders or any other questions you may have.
Angie Goodman, Broker Associate, Keller Williams Realty, 850-321-4666, email@example.com
The Lenders Consortium is only one of the programs available as a first time homebuyer and can provide Down Payment Assistance and Closing Cost Assistance, that in some cases, you do not have to repay... Here's a link to there website.. http://www.tallahasseelenders.org/
Do not hesitate to contact me if you would like more personal direction..
Good Luck and Regards,
Absolutely!! I have an in-house lender that specializes in programs for first time home buyers with the issues you cited. Call me at 850-491-2721 and I'll be glad to get you that information.
Also, you mention that "my husband does not really have any credit." Get him started building up his credit. There are plenty of books and articles out there on that, but basically, he borrows a bit, even with a secured credit card, if necessary, and promptly pays it back. He keeps doing that, and that'll establish some credit for him.
Also, if you haven't done it already, check your credit reports. I wasn't sure if you had, or whether you were just guessing when you said that your credit is good but your husband's is not really there. If you were just guessing, you really should take a look at both of your credit reports.
There are loan options for your family. At Goldstar mortgage, we have many different loan products to help you. Are you still in the market to buy a home? If so, I would love to see if we can help you out. We can do loans down to 600 Credit Score. We also don't need 3 trade lines like many banks require. I would like to see if I can help you out with a home mortgage. I will try and make this a very easy process. Please let me know how to help out.
MN District Branch Manager
NMLS # 387408
Gold Star Financial Group
The Rivers Team
Keller Williams Realty
Have you looked into this one
If you are still trying to buy a home and need some help, the answer to your question is yes. There are so many ways to accomplish this that you need to sit down with somebody who will work you through the process.
Please feel free to visit our site and request a custom buyer package if you would like to purchase a home and pay nothing out of pocket.
I am the master of creative financing where if you havea 680+ credit score, we can get you into the home without a down payment (no income, no assets) and keep your interest rate under 6.5% (if your loan amount meets FNMA standards). All we would need is a tiny equity gift of 5%. Email me when you can: firstname.lastname@example.org